GBP/USD hits new 2014 low before bounce
James Chen October 15, 2014 6:59 PM
<p>GBP/USD (daily chart shown below) has continued its recent slide to hit a new 2014 low below 1.5900 and a new 11-month low before bouncing […]</p>
GBP/USD (daily chart shown below) has continued its recent slide to hit a new 2014 low below 1.5900 and a new 11-month low before bouncing on Wednesday. A slight further drop would place the currency pair at a new one-year low.
The current bearish momentum occurs within the context of a three-month decline that began at the mid-July multi-year high of 1.7190.
This decline accelerated rapidly until it hit a low of 1.6050 in early September, and then rebounded all the way up to key resistance around the 1.6500 level. From that resistance level, GBP/USD again slid rapidly before hitting its downside target on Tuesday at 1.5900, a major support level.
Having reached this downside target, the currency pair continues to carry a strongly bearish directional bias, despite the current bounce.
Any re-break below the 1.5900 level should begin to target further downside support objectives around 1.5750 and then 1.5600.
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